BTEC Business Level 3 Business Finance Topic C, D & E questions with answers

BTEC Business Level 3 Business Finance \| \| \| \| \| \|




Topic C, D & E questions with answers \| \| \| \| \| \| \|




Record Transactions - CORRECT ANSWERS ✔✔The recording in the
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financial accounts of the amount of money coming into the business and all
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that is spent.
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Management of Business - CORRECT ANSWERS ✔✔The planning, \| \| \| \| \| \| \| \|




monitoring and controlling of the resources within the business.
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Compliance - CORRECT ANSWERS ✔✔Ensuring all the transactions
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recorded meet with current legislation ensuring the accounts reflect a true
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and fair view of the company's financial position.
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Fraud - CORRECT ANSWERS ✔✔Where a business's money is used
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inappropriately or, is acquired by the wrong person for personal gain. \| \| \| \| \| \| \| \| \| \|




HMRC - CORRECT ANSWERS ✔✔His Majesty's Revenue & Customs - the
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organisation responsible for collecting all personal and business taxes.
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Capital Income - CORRECT ANSWERS ✔✔The money invested in a business
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by its owners or other investors that is used to set up the business or, to buy /
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improve the value of Non-Current Assets
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, Loan - CORRECT ANSWERS ✔✔A fixed amount of money that must be
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repaid in set monthly instalments.
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Mortgage - CORRECT ANSWERS ✔✔Is a long term loan of 10 to 30 years
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used to buy a property. It is repaid in monthly instalments which may differ
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depending on the rate of interest. A mortgage is a "secure" loan which means it
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is attached to the property it was taken out to buy.
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Shares - CORRECT ANSWERS ✔✔Are sold by a business on the stock
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exchange to private individuals / companies in order to raise capital income
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(share capital). The owners of shares are known as shareholders and it is the
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shareholders who own the company and are involved in making key decisions \| \| \| \| \| \| \| \| \| \| \| \|




about the future of the business.
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Owners Capital - CORRECT ANSWERS ✔✔The money invested in the
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business from the owner's personal savings.
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Debenture - CORRECT ANSWERS ✔✔A medium to long term source of
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income. They are considered Loan Capital. The debenture is repayable as a
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lump sum on given date in the future.
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Revenue Income - CORRECT ANSWERS ✔✔Money that comes into the
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business from day-to-day activities i.e. making sales.
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Cash Sales - CORRECT ANSWERS ✔✔Money that is received immediately
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from the sale of goods or services (includes payments from credit & debit
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cards).